On December 17, the merged entity “Integrated Korean Air” is set to officially launch, following the approval of the merger by the respective boards of Korean Air and Asiana Airlines on the 13th and final contract signing on the 14th. The merger ratio has been set at 1 Korean Air share for every 0.27 Asiana Airlines shares. This merger is anticipated to strengthen the competitiveness of the national aviation industry and enhance Incheon Airport’s hub function.
Korean Air will succeed all assets, liabilities, and obligations of Asiana Airlines, including its employees, following the merger agreement. The merger ratio was calculated using the market price standard under the Capital Market Act, resulting in a projected capital increase for Korean Air of about 101.7 billion won.
To ensure shareholder protection and procedural fairness, Korean Air established a special committee for social, environmental, and governance (ESG) considerations, which examined the fairness of the transaction terms. The fairness and protection of shareholder interests were verified by independent external experts.
Following the contract signing, Korean Air will apply to the Ministry of Land, Infrastructure, and Transport for merger approval and begin procedures to modify operational specifications (OpSpecs) required for the integrated airline’s operation in June. This includes incorporating Asiana Airlines’ aircraft and safety systems into Korean Air’s operational framework and will be followed by international license procedures.
Korean Air is also preparing for the integration with major upgrades, including remodeling its integrated operations control center (OCC) and cabin training center in anticipation of increased fleet and route demands. Additionally, it has standardized training programs to reduce operational disruptions and is investing in large-scale maintenance facilities, such as new engine test cells and maintenance factories.
The integration of mileage programs is under careful consultation with relevant authorities, including the Fair Trade Commission, with a definitive plan to be announced in due time. Korean Air plans to redistribute overlapping routes, develop new routes, and enhance service quality with changes like in-flight meal revamps and airport lounge renovations.
A Korean Air official highlighted that the merger aims to enhance the national aviation industry’s competitiveness and strengthen Incheon International Airport’s hub function, thereby achieving the goal of elevating South Korea’s aviation industry globally.
Asiana Airlines will hold an extraordinary general meeting in August to approve the merger, while Korean Air, under small-scale merger requirements, will substitute a board resolution for a general meeting.